You Sold a Put Contract on EDF Stock at an Option

question 307

Multiple Choice

You sold a put contract on EDF stock at an option price of $.40. The option had an exercise price of$20 .The option was exercised. Today, EDF stock is selling for $19 a share. What is your total profit or loss on all of your transactions related to EDF stock assuming that you close out your positions in
This stock today? Ignore transaction costs and taxes.

• A) -$140
• B) -$60
• C) $40
• D) $60
• E) $140

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Definitions:

Informed Consent

A process in which a patient voluntarily agrees to participate in a treatment, research study, or procedure after understanding the risks, benefits, and alternatives.

Institutional Agreement

A formal arrangement between institutions that outlines the terms and conditions of a partnership, collaboration, or mutual understanding.

Single-Subject Experimental

A research design that focuses on the response of a single participant to document the effectiveness of an intervention.

Rare Disorder

A health condition that affects a small percentage of the population, often complicated by a lack of broad medical knowledge and treatment options.